Light rail forces city businesses to change track as project impacts hit home

At least two businesses have closed their doors and are pivoting to functions-only and some are considering claiming compensation as they confront the reality of work starting on the light rail extension along London Circuit.

Major Projects Canberra closed off London Circuit at Northbourne Avenue and Edinburgh Avenue on 5 February. Fencing, barriers and signage have gone up and trucks and machinery are positioned on the street.

Prominent restaurant Saint Malo has decided the disruption will be too much for the business and it and associated bar Alia will now just cater for functions such as weddings and other events until the worst is over.

Venue manager Asad Panezai said that could take two to three years, but the business expected to survive on the functions trade.

Mr Panezai said the conditions from the light rail construction would have been intolerable for their customers.

“There’s no parking, and because the work’s going to be 24 hours, the pollution and the dust and the smoke from the machines working outside on the streets, there would not be a healthy environment for the customers to be sitting inside and eating food,” he said.

The business had been in talks with the ACT Government but, in the end, did not see any point in keeping the restaurant and bar open as per usual.

“They did not say anything, did not give us any compensation regarding that, so we had no choice,” he said.

Mr Panezai said the situation was still sinking in.

“Some of us will face it from next week and this week will be the last week of us operating as a restaurant,” he said.

Saint Malo would still offer a food truck at the back of their premises Monday to Friday so the place won’t look completely dead.

“We are still trying to keep that vibe alive,” Mr Panezai said.

He said some full-time staff had left, but the casuals would still be on call for events.

Mr Panezai said that when light rail was up and running, it would be good for business.

“Yeah, it should be. Obviously, they are doing something, they say they are doing something, for the Canberra economy and for people’s commute,” he said.

Further down the street at The Cupping Room, cafe manager Rachel Amper is anxious about the next two or so years. The full impacts on business, on top of the already tough hospitality environment, have yet to be felt.

She is bracing for the loss of outdoor seating on London Circuit.

“It’s very nerve-wracking, especially because there’s so much changing,” she said.

“At the moment, we have it really good with the barricades being far away from the cafe, but I do know that’s temporary. Eventually, they’re going to move the barricades … and we’ll have to move all of our tables, which is a big change for us.”

When work gets underway properly, she will have to close the front door to seal the cafe off and redirect customers to the side and rear entrances.

The loss of parking worries Ms Amper and she is guiding customers to other spaces nearby.

The construction period will be a long time, but the business has survived COVID, and it hopes to have some strategies in place to keep its customers, including possible discounts to compensate them for paid parking.

Ms Amper said an Infrastructure Canberra official had been in contact and made the process less terrifying than it could have been.

She said the official wanted to hear feedback on how the work was impacting the cafe – if it was too loud and dusty, and how it affected the customer base.

“But it’s just the beginning, so we don’t really know how that will progress and if that will change in the future,” Ms Amper said.

She was aware that other businesses were considering making compensation claims, but it was too early for the Cupping Room to talk about that.

“I know that it has been in the talks, especially with a few of the cafes down the road, mainly because they’re open during the night and some of the works happen during the night,” Ms Amper said.

She said it was a good thing that the business was so adaptable.

“We want to make sure people know that this sucks for everybody, but we’re still here for you. We give you good service regardless of everything that’s happening outside,” Ms Amper said.

But once light rail was built, it would be great for business, she said.

“Light rail will be incredible,” Ms Amper said.

“We do know light rail will be the best thing for this part of town, which doesn’t get that much traffic during the day.”